US-based Ferro lowers adjusted earnings forecast for 2012

10 October 2012 03:42[Source: ICIS news]

SINGAPORE (ICIS)--US-based specialty chemicals firm Ferro has lowered its 2012 adjusted earnings forecast to 7-12 cents (5-9 euro cents) per share, after adjusting for special charges following losses related to its solar paste business, it late on Tuesday.

This compares with the 15-20 cents per share estimate made previously, the company said in a statement.

“The change in guidance is primarily the result of deterioration in the company's forecast for its solar paste and metal powder businesses, and further weakening of business conditions in ?xml:namespace>Europe, partially offset by the pension expense adjustment,” it added.

The company also said that it is working towards cutting operating expenses by $30m by the end of 2014, adding that operating expense reductions of $15m are expected by the end of next year.

Ferro expects to post non-cash impairment charges at between $175m and $20m during the third quarter of this year, mainly driven by “reduced forecasts of future results” in the company's electronic materials segment, which includes the solar paste unit, it added.